Income from all sources reduce the “needs” of the spouse who is claiming alimony from the other party.  “Needs versus ability to pay” is the general standard utilized by the courts in determining alimony awards.  The importance of examining all sources of income available to the recipient of alimony cannot be understated.

Interest earned on 401(k) retirement accounts should be considered as income available to the spouse even though the spouse is not able to draw on the income until he or she reaches the age of 65.  Niederman v. Niederman, 6o So3rd 544 (Florida 4th DCA 2011)  stands for that very principle.  This is true regardless of whether the recipient of the alimony award has attained the age at which funds may be withdrawn without penalty.

Income is defined under Florida law, Section 61.046(8), Florida Statutes.  Income includes retirement benefits, pensions, dividends, and interest.

A court abuses its discretion in not considering interest income earned from retirement accounts in determining the income of the spouse who was seeking alimony.

Alimony can be a contentious issue in a divorce case.  It is important to have all relevant information regarding alimony at your disposal.  Experienced and seasoned Boca Raton divorce attorney Alan R. Burton has the experience to fight for your all of your rights, whether they affect alimony claims, equitable distribution, child support or time sharing. Call Alan R. Burton today at 954-295-9222 for a free consultation.

Equitable distribution of retirement accounts in Florida, including 401(k) accounts, is governed by Florida Statutes 61.075.

To first determine if in fact a particular retirement account is a marital asset, you first have to understand the definition of a marital asset. A marital asset is defined as any asset acquired during the marriage, either individually or in joint names. Although there are other aspects to this definition, this is the primary definition.

Marital assets also include all vested and non vested benefits, rights, and funds accrued during the marriage in retirement, pension, profit-sharing, annuity, deferred compensation and insurance plans and programs.

We can see that retirement accounts, including a 401(k) account, even if it is in the name of one party, it will be considered as a marital asset if all of it or a portion of it was acquired during the marriage.

Giving up any portion of a retirement account that was accumulated during the course of a marriage can be a “difficult pill to swallow.” The usual reaction by an individual is that “I worked hard my whole life for that money”, and “I’m not going to give up one penny of of it.”

You may not necessarily have to give up a portion of the asset, but you most certainly will have to give up 50% of the value, and offset it against other assets.

Psychologically, I know it is difficult to surrender an asset many consider to be very personal. A recent article from a Jamaican Newspaper demonstrates the global aspects of an individual’s view of his or her retirement accounts. They will fight to the end to protect what they perceive as their own individual assets.